What Happens when the Minimum Wage Is Raised?

Well, among other things, you get employers looking for ways to replace human workers with automated ones. To be sure, the process of worker automation is inevitable regardless of whether there has been an increase in the minimum wage. But if you are a human being interested in keeping a job, minimum wage increases--especially sharp …

The Latest Pie-in-the-Sky Idea in Los Angeles

So, Los Angeles has decided to increase its minimum wage to $15 per hour. I'm sure that there are a host of people rejoicing over this alleged act of economic justice, but remember that actions have consequences: BERGMAN: Caroline Styne owns more than half a dozen high-end LA eateries. She says of every dollar that …

In which We Are Reminded that Raising the Minimum Wage Can Do More Harm than Good

Team Obama and the Democratic party like to cite Warren Buffett as an authority for the proposition that taxes have to be raised in order to address inequality in society; never mind the fact that the so-called "Buffett Rule" for taxes would work out rather well for Warren Buffett. I wonder what they will have …

Quote of the Day

This study investigated the antipoverty efficacy of minimum wage policies.  Proponents of these policies contend that employment impacts are negligible and suggest that consumers pay for higher labor costs through imperceptible increases in goods prices.  Adopting this empirical scenario, the analysis demonstrates that an increase in the national minimum wage produces a value-added tax effect …

Yes Virginia, Minimum Wage Laws Can Negatively Impact Employment

Behold. Of course, we can't possibly expect the likes of Paul Krugman to stop pushing for minimum wage increases, even though he has now acknowledged that those increases have deleterious consequences. But the Internet is a wonderful thing, and with it, we can  hurl Krugman's words back at him each time he derides anyone else …

In which Socialists Learn a Lesson about Economics

The Freedom Socialist Party (yeah, I've never heard of them either) is advocating a $20 per hour minimum wage. But when it comes to trying to get a part-time web designer, the party is only willing to pay $13 per hour. Asked about the discrepancy between the party's words and deeds, "Doug Barnes, the party's …

How Minimum Wage Hikes Hurt Workers

Behold. Key observation from Tyler Cowen: "I would be skeptical or agnostic about some of those particular estimates, but surely the general point holds, and is hardly ever mentioned by advocates of hiking the minimum wage." I don't suppose that latter fact is going to change anytime soon. Again, let's do something for the middle …

Quote of the Day

. . . we should not have a major party promoting, as a centerpiece initiative and for perceived electoral gain, a law that might put half a million vulnerable people out of work, and that during a slow labor market. --Tyler Cowen. He is quite right, of course.

The CBO’s Minimum Wage Analysis Should Surprise Precisely No One

The Congressional Budget Office has come out with an analysis of what might happen if the minimum wage is increased to $10.10. That analysis consists of the following major points: A minimum wage increase "would significantly boost income for about 16.5 million workers, raising their income by $31 billion and potentially pulling nearly 1 million …